Asset-Backed Alerthttps://www.abalert.com
Asset-Backed Alerten-usCopyright 2000-2018 Harrison Scott Publications, 5 Marine View Plaza, Suite 400, Hoboken, NJ 07030. All Rights Reserved.College Ave Lands Education-Finance Vethttps://www.abalert.com/search.pl?ARTICLE=179833
Marketplace education lender College Ave Student Loans has hired Sharon Asch Gold to head its capital-markets unit.Gold started on July 30, adding instant momentum to a push by the Wilmington, Del., lender to become a routine sponsor of asset-backed bond deals.College Ave&rsquo;s securitizations so far have been limited to a $160.9 million deal in July 2017 and a $199.3 million transaction this June, both with Barclays as bookrunner. The timing...https://www.abalert.com/search.pl?ARTICLE=179833Fri, 10 Aug 2018 00:00:00 +0200Sprout Hires Akre for Non-QM Funding Pushhttps://www.abalert.com/search.pl?ARTICLE=179727
In a move that could jumpstart its mortgage-bond issuing efforts, Sprout Mortgage has hired David Akre to head its capital-markets unit.Akre, a securitization veteran whose former employers include Five Oaks Investment, New York Mortgage Trust and Thornburg Mortgage, arrived last week with the title of executive vice president. Among his initial tasks: fine tuning Sprout&rsquo;s conduit operation, which has been slow to produce an initial bond...https://www.abalert.com/search.pl?ARTICLE=179727Fri, 03 Aug 2018 00:00:00 +0200Leadership Shakeup Hits BlackRock CLO Unithttps://www.abalert.com/search.pl?ARTICLE=179636
In a matter of just a few weeks, both co-heads of BlackRock’s U.S. collateralized loan obligation-issuing unit have resigned from the firm.Managing director Scott Snell is expected to remain in BlackRock’s New York office for about two months to help transfer his duties to other staff — including some new recruits. His plans beyond that are unknown.Snell’s resignation comes as the group’s other leader, managing director Adrian Marshall,...https://www.abalert.com/search.pl?ARTICLE=179636Fri, 27 Jul 2018 00:00:00 +0200RBC Recruits Pair of CP Pros From BofAhttps://www.abalert.com/search.pl?ARTICLE=179438
RBC&rsquo;s commercial-paper unit has picked up two high-profile professionals from Bank of America.Ralph Esposito had been a managing director handling commercial-paper origination, sales and trading at BofA, with John Widmeier serving as his deputy on the trading side. Now, Esposito is playing a key role involving sales and trading of both secured and unsecured short-term securities in RBC&rsquo;s New York office &mdash; with Widmeier helping...https://www.abalert.com/search.pl?ARTICLE=179438Fri, 20 Jul 2018 00:00:00 +0200New Front Opens in Non-Agency Markethttps://www.abalert.com/search.pl?ARTICLE=179346
A number of mortgage-bond issuers are working on non-agency deals backed entirely by conforming loans on single-family investment properties.Since Flagstar Mortgage issued a first-of-its-kind deal on May 21, others including Carrington Mortgage, J.P. Morgan and TIAA have begun assembling pools of agency-eligible loans written to individual borrowers who buy single-family rental properties for investment purposes.A flurry of offerings is expected...https://www.abalert.com/search.pl?ARTICLE=179346Fri, 13 Jul 2018 00:00:00 +0200Midweek Holiday Halts Secondary Tradeshttps://www.abalert.com/search.pl?ARTICLE=179256
Secondary-market activity has stalled.This week started slow as industry participants took time off ahead of Independence Day. Trading then froze across asset classes, with no formal bid lists on Thursday or Friday. &ldquo;It&rsquo;s dead,&rdquo; one trader said.According to Empirasign, asset-backed bond trades totaled $117.8 million on July 2-3, down 83% from the week-earlier timeframe. Collateralized loan obligation trades totaled $32 million,...https://www.abalert.com/search.pl?ARTICLE=179256Fri, 06 Jul 2018 00:00:00 +0200Hedge Fund Taps Jefferies to Lead Rare CBOhttps://www.abalert.com/search.pl?ARTICLE=179042
Industry professionals are abuzz over a rare collateralized bond obligation that Jefferies is structuring on behalf of a small hedge fund operator.The issuer, RVX Asset Management of Aventura, Fla., invests in emerging-market debt and equity. Sources said the deal&rsquo;s collateral pool would be made up of corporate bonds from developing countries. The exact size and timing of the offering are unknown.&ldquo;In a lot of countries, loans...https://www.abalert.com/search.pl?ARTICLE=179042Fri, 29 Jun 2018 00:00:00 +0200New Assignments for Morningstar Execshttps://www.abalert.com/search.pl?ARTICLE=178666
Morningstar has promoted three senior members of its structured-finance staff, with two of them absorbing duties that formerly belonged to chief operating officer Joe Petro.Managing director Becky Cao is filling a newly created position in which she aims to ensure the quality of the agency&rsquo;s securitized-product ratings via proper applications of its evaluation procedures. Michael Brawer and Brian Vonderhorst, meanwhile, are splitting a job...https://www.abalert.com/search.pl?ARTICLE=178666Fri, 22 Jun 2018 00:00:00 +0200Mortgage-Bond Manager Shutting Downhttps://www.abalert.com/search.pl?ARTICLE=178531
Structured Portfolio Management, a mortgage-bond shop that made a killing for its investors in the wake of the financial crisis, is unwinding.Talk began circulating last week when Bank of America offered a portfolio of mortgage derivatives on behalf of an undisclosed hedge fund manager. Now comes word that the package, with a face value of more than $1 billion, represented the holdings of SPM&rsquo;s main fund.The liquidation is tied to a move by...https://www.abalert.com/search.pl?ARTICLE=178531Fri, 15 Jun 2018 00:00:00 +0200Citi Alumni to Finance Consumer Lendershttps://www.abalert.com/search.pl?ARTICLE=178386
Former Citigroup bankers Ari Rosenberg and David Mandel are starting a business that would back consumer lenders, with securitization as part of their strategy.The New York operation, Spot18, is forming as a unit of investment firm Sherman Financial. Rosenberg and Mandel started talking to prospective clients this week.Sources said the operation would offer warehouse lines to originators of consumer-finance products including personal loans, auto...https://www.abalert.com/search.pl?ARTICLE=178386Fri, 08 Jun 2018 00:00:00 +0200Climate Change Inspires Issuing Proposalhttps://www.abalert.com/search.pl?ARTICLE=178294
Pacific Gas and Electric is proposing a new use for utility-fee securitizations.The San Francisco company has proposed to the California Public Utilities Commission that it could deploy the proceeds from such transactions to fortify its generation facilities in the state against disasters resulting from climate change &mdash; including storms and wildfires. Should the effort move ahead, the expectation is that copycat offerings could surface...https://www.abalert.com/search.pl?ARTICLE=178294Fri, 01 Jun 2018 00:00:00 +0200Credit Agricole Lands Starr for Leading Rolehttps://www.abalert.com/search.pl?ARTICLE=178209
Beth Starr joined Credit Agricole&rsquo;s New York office this week as a managing director in charge of the bank&rsquo;s asset-backed bond syndicate desk.Starr had been working until April as head of the capital-markets group at Spruce Finance, a solar-equipment lender that completed a single securitization shortly before her arrival in 2016 but more recently has struggled to stay in business.Before that, Starr helped shepherd a series of bond...https://www.abalert.com/search.pl?ARTICLE=178209Fri, 25 May 2018 00:00:00 +0200Leading CLO Attorney Moving to Milbankhttps://www.abalert.com/search.pl?ARTICLE=178118
In a move that could affect both firms&rsquo; business volumes, collateralized loan obligation attorney Sean Solis is leaving Dechert to join Milbank Tweed.As a partner reporting to Charlotte-based group head John Timperio, Solis was the highest-ranking member of Dechert&rsquo;s CLO practice in New York. He leaves today and starts at Milbank on May 21, also in New York.Sources said some or all of the six associates working under Solis will...https://www.abalert.com/search.pl?ARTICLE=178118Fri, 18 May 2018 00:00:00 +0200Rumor Mill Churns Amid KeyBank Departureshttps://www.abalert.com/search.pl?ARTICLE=178025
A continuing series of staff departures is prompting speculation about the future of KeyBank&rsquo;s structured-product brokerage unit.While there&rsquo;s no official word on the fate of the operation, some industry participants see the moves as a sign its days might be numbered. Others suggest the bank merely is paring down to reflect a market-wide decrease in trading activity.Either way, many of the sales and trading professionals that Key...https://www.abalert.com/search.pl?ARTICLE=178025Fri, 11 May 2018 00:00:00 +0200Group Proposes Twist on Stranded Costshttps://www.abalert.com/search.pl?ARTICLE=177933
A California trade group is suggesting that two energy companies in the state team up to float a massive securitization.The California Community Choice Association&rsquo;s plan calls for Pacific Gas and Electric of San Francisco and Southern California Edison of Rosemead to carry out a joint offering of some $2.5 billion by yearend. It proposed the idea to the California Public Utilities Commission on April 3, with the pitch that it could reduce...https://www.abalert.com/search.pl?ARTICLE=177933Fri, 04 May 2018 00:00:00 +0200Cantor to Install CLO-Underwriting Teamhttps://www.abalert.com/search.pl?ARTICLE=177818
Cantor Fitzgerald is positioning itself as an underwriter of collateralized loan obligations.The broker-dealer has been seeking a banker to lead the effort, but has yet to zero in on a candidate.The recruit&rsquo;s efforts would complement those of a longstanding CLO-trading business led by Ervin Pilku in New York. The push also would dovetail with a broader expansion that Cantor has been pursuing in the structured-product industry under the...https://www.abalert.com/search.pl?ARTICLE=177818Fri, 27 Apr 2018 00:00:00 +0200ABS Issue Would Rely on Blockchainhttps://www.abalert.com/search.pl?ARTICLE=177726
A blockchain-technology company pioneering the use of “smart contracts” for securitization purposes expects to complete a debut transaction in the second half.Symbiont, among a growing number of firms operating blockchain networks, has lined up an undisclosed underwriter for the Rule-144A deal, which will be backed by auto or equipment leases. Using smart contracts similar to those employed by some cryptocurrencies, Symbiont would...https://www.abalert.com/search.pl?ARTICLE=177726Fri, 20 Apr 2018 00:00:00 +0200Louisiana Poised to Securitize BP Settlementhttps://www.abalert.com/search.pl?ARTICLE=177641
Louisiana plans to securitize a portion of the proceeds from a settlement with BP over the Deepwater Horizon oil spill.Under a bill the state Senate is set to pass in the coming days, a newly created agency called Louisiana Economic Financing Corp. would issue $852 million of bonds backed by cashflows from the $6.8 billion settlement. The transaction is expected to hit the market late this year or early next year.Among the first orders of...https://www.abalert.com/search.pl?ARTICLE=177641Fri, 13 Apr 2018 00:00:00 +0200CLO Pipeline Shrinks Amid Gusher of Refishttps://www.abalert.com/search.pl?ARTICLE=177551
Widening spreads on collateralized loan obligations appear to be deterring issuance at the start of what was expected to be a record month for deal flow.Only a week or so ago, U.S. issuers had a total of 35 new deals in the pipeline for April. But only a handful of offerings were in the market this week, and the few completed deals priced wider than expected. Dealers and managers focused instead on a packed calendar of CLO refinancings that must...https://www.abalert.com/search.pl?ARTICLE=177551Fri, 06 Apr 2018 00:00:00 +0200Yamaha Resurfaces With Card-Bond Planhttps://www.abalert.com/search.pl?ARTICLE=177470
Look for Yamaha Motor Corp. USA to resume issuing asset-backed securities after a long absence from the market &mdash; but with a new type of collateral backing the bonds.The motorcycle maker&rsquo;s captive-lending arm, Yamaha Motor Credit, plans to use securitization as a funding mechanism for Yamaha-branded credit cards it started offering about a year ago. The operation also is looking into deals backed by dealer-floorplan loans.Word of the...https://www.abalert.com/search.pl?ARTICLE=177470Fri, 23 Mar 2018 00:00:00 +0200European CLOs Encounter Rough Periodhttps://www.abalert.com/search.pl?ARTICLE=177342
Collateralized loan obligation issuers in Europe suddenly are having a harder time placing the senior portions of their deals.While characterizing the situation as temporary, industry participants said a number of factors are at play &mdash; including the approaching fiscal yearend for investors in Japan and an over-supply of offerings from first-time issuers. The upshot: Spreads on senior CLO paper in the region have reached their widest point...https://www.abalert.com/search.pl?ARTICLE=177342Fri, 16 Mar 2018 00:00:00 +0200Angel Oak Solves Fix-and-Flip Problemhttps://www.abalert.com/search.pl?ARTICLE=177256
The latest securitization of &ldquo;fix-and-flip loans&rdquo; employed a novel structure that industry professionals see as a possible road map for other issuers.On March 2, Angel Oak Capital privately placed $90 million of bonds backed by short-term loans to developers and speculators who buy run-down houses, and then quickly fix and resell them. Performance Trust handled distribution and structuring duties &mdash; using a revolving trust for...https://www.abalert.com/search.pl?ARTICLE=177256Fri, 09 Mar 2018 00:00:00 +0200ED&F Bowing Out of Secondary Markethttps://www.abalert.com/search.pl?ARTICLE=177167
Broker-dealer ED&F Man is getting out of the market for structured products.Group head Darryl Smith already is in the process of laying off his New York-based sales and trading staff, sources said. Smith will exit as well.Among those on their way out are collateralized loan obligation specialists Stanton Lenahan and Anthony Veltri. Lenahan, formerly of Guggenheim, had started in 2015 as one of Smith&rsquo;s first recruits. He is looking for a new...https://www.abalert.com/search.pl?ARTICLE=177167Fri, 02 Mar 2018 00:00:00 +0200Gordian Knot Toying With SIV Re-Launchhttps://www.abalert.com/search.pl?ARTICLE=177049
Gordian Knot hasn&rsquo;t given up on the market for structured investment vehicles.The London firm once ran an SIV called Sigma Finance that was the largest of its kind, with a portfolio of $45 billion. But the vehicle and all others like it failed after the 2007 financial-market crash.Now comes word that Gordian Knot founders Stephen Partridge-Hicks and Nicholas Sossidis were in the U.S. in recent weeks in an early attempt to determine the...https://www.abalert.com/search.pl?ARTICLE=177049Fri, 23 Feb 2018 00:00:00 +0200Bonds Favored for Sallie's Personal Loanshttps://www.abalert.com/search.pl?ARTICLE=176927
Sallie Mae Bank increasingly is looking like a candidate to issue personal-loan securities.Industry participants are envisioning an initial bond sale of $500 million to $1 billion that would hit the market late this year. The underlying accounts would consist mainly of marketplace loans that the Newark, Del., operation has been buying from Lending Club.Sallie began accumulating personal loans in significant volumes during the second half of 2017,...https://www.abalert.com/search.pl?ARTICLE=176927Fri, 16 Feb 2018 00:00:00 +0200Ranieri Backs Clayton Alumni's Venturehttps://www.abalert.com/search.pl?ARTICLE=176833
Lewis Ranieri&rsquo;s Selene Holdings is backing a new due-diligence business.The New York operation, New Diligence Advisors, initially is focusing on reviewing home loans that don&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; standards. It also is covering nonperforming and reperforming accounts.Working with Ranieri are Mark Hughes, Tom Donatacci and Ann Gibbons. Hughes, a former Clayton Holdings...https://www.abalert.com/search.pl?ARTICLE=176833Fri, 09 Feb 2018 00:00:00 +0200CLO Issuers Hopeful on Looming Court Rulinghttps://www.abalert.com/search.pl?ARTICLE=176684
The collateralized loan obligation market is abuzz with speculation that a pending court decision would render such transactions exempt from the Dodd-Frank Act&rsquo;s risk-retention rule.At issue is a lawsuit the Loan Syndications and Trading Association filed in U.S. Appeals Court in Washington in 2014, arguing that the Federal Reserve and SEC were mistaken in applying the skin-in-the-game requirement to CLOs. The talk among industry...https://www.abalert.com/search.pl?ARTICLE=176684Fri, 02 Feb 2018 00:00:00 +0200Carrington Poised to Join Non-QM Pipelinehttps://www.abalert.com/search.pl?ARTICLE=176595
Carrington Mortgage is favoring securitization to fund a new program under which it is writing home loans that fall outside the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; guidelines.While the timing of an initial bond offering will depend on origination volume, sources expect the effort to take shape quickly &mdash; with a deal coming during the second half of this year. The transaction likely would total a...https://www.abalert.com/search.pl?ARTICLE=176595Fri, 26 Jan 2018 00:00:00 +0200Traders Breathing Easier as Charges Fadehttps://www.abalert.com/search.pl?ARTICLE=176505
The U.S. government&rsquo;s crackdown on improper structured-product trading practices appears to be in its final stages.The initiative, focusing on instances in which dealers overcharged secondary-market clients for their structured-product investments, has seen its active court cases shrink to just three &mdash; from more than a dozen at its peak.One of the remaining proceedings stems from a partial mistrial involving former Nomura home-loan...https://www.abalert.com/search.pl?ARTICLE=176505Fri, 19 Jan 2018 00:00:00 +0200Startup Aims to Securitize Crypto Loanshttps://www.abalert.com/search.pl?ARTICLE=176411
A Denver firm that recently began originating loans secured by cryptocurrencies is sketching out plans to securitize the credits.SALT Lending uses a couple channels to fund investors wishing to borrow against their holdings of digital currencies. On Dec. 27, the firm launched its Crypto Credit Opportunity Fund, which booked $7 million of loans in its first nine days and expects to originate about $50 million more in the next few weeks.Based on...https://www.abalert.com/search.pl?ARTICLE=176411Fri, 12 Jan 2018 00:00:00 +0200Insurers Resist NAIC-Induced Bond Saleshttps://www.abalert.com/search.pl?ARTICLE=176055
Defying some industry participants&rsquo; forecasts, insurers largely sat on their portfolios of pre-credit-crisis mortgage bonds at yearend.At issue is a push by the National Association of Insurance Commissioners to assign new loss projections to residential and commercial mortgage securities &mdash; and in the process increase the amounts of capital insurers must set aside against some of those holdings.The expectation was that those companies...https://www.abalert.com/search.pl?ARTICLE=176055Fri, 05 Jan 2018 00:00:00 +0200Wells Slashes Funding for Subprime Autoshttps://www.abalert.com/search.pl?ARTICLE=175967
Wells Fargo is further reducing its exposure to subprime-auto loans, where it has long played a lead role in extending warehouse lines to lenders and running the books on their asset-backed bond offerings.Wells already has begun dismantling warehouse facilities used by some clients, particularly smaller lenders that focus on &ldquo;deep&rdquo; subprime borrowers. A spokesperson for the bank declined to comment.The pullback is the result of a...https://www.abalert.com/search.pl?ARTICLE=175967Fri, 15 Dec 2017 00:00:00 +0200Loan Tracker Teams Up With IBMhttps://www.abalert.com/search.pl?ARTICLE=175892
Global Debt Registry has been admitted to an IBM mentoring program for developers of blockchain applications.The New York firm&rsquo;s acceptance by the IBM Blockchain Founder Accelerator is expected to become official in January. The focus of the arrangement: creating an asset registry for use by originators and buyers of marketplace-originated personal loans, along with warehouse lendersGlobal Debt Registry already has been talking to some of...https://www.abalert.com/search.pl?ARTICLE=175892Fri, 08 Dec 2017 00:00:00 +0200Reperforming-Loan Buyers Eye "Dirty' Dealshttps://www.abalert.com/search.pl?ARTICLE=175809
Issuers of bonds backed by reperforming mortgages are planning deals backed by riskier collateral.Sources are pointing to Bayview Financial, Chimera Investment and FirstKey Financial as part of a growing group of candidates to offer the securities. Among the characteristics of the asset pools they are envisioning: higher delinquencies; shorter &ldquo;clean&rdquo; payment histories; lower borrower credit scores; and higher loan-to-value ratios.The...https://www.abalert.com/search.pl?ARTICLE=175809Fri, 01 Dec 2017 00:00:00 +0200Merck Adds to Asset-Backed Bond Dosagehttps://www.abalert.com/search.pl?ARTICLE=175469
Merck continues to add to its holdings of asset-backed securities.Officials from the Kenilworth, N.J., drugmaker&rsquo;s treasury department brought issuers and underwriters up-to-date on its plans in recent weeks, indicating that 2018 could bring an expansion of $200 million to $300 million. That would mark the portfolio&rsquo;s biggest single-year addition in recent memory.Merck&rsquo;s asset-backed bond holdings already were at an all-time...https://www.abalert.com/search.pl?ARTICLE=175469Fri, 17 Nov 2017 00:00:00 +0200Demand Sustaining CLO Spread Squeezehttps://www.abalert.com/search.pl?ARTICLE=175386
Even with spreads on collateralized loan obligations steadily tightening for much of this year, managers keep looking for ways to further reduce their funding costs.Prudential issued CLO paper this week that set a three-year investment period for the refunding of a 2013 deal. That&rsquo;s shorter than the typical extension, or &ldquo;re-set,&rdquo; of four or five years, and gave investors additional comfort that left them willing to accept lower...https://www.abalert.com/search.pl?ARTICLE=175386Fri, 10 Nov 2017 00:00:00 +0200CapOne Seen Securitizing Cabela's Accountshttps://www.abalert.com/search.pl?ARTICLE=175282
It looks like Capital One will fold Cabela&rsquo;s credit-card business into its securitization program, allaying fears among investors that the bank would fund the retailer&rsquo;s accounts by another means.After CapOne agreed to purchase Cabela&rsquo;s card receivables in October 2016, the talk among industry professionals was that the bank most likely would fund that business via deposits &mdash; spelling the end for an asset-backed bond...https://www.abalert.com/search.pl?ARTICLE=175282Fri, 03 Nov 2017 00:00:00 +0200Finacity Accused of Snatching Trade Secretshttps://www.abalert.com/search.pl?ARTICLE=175024
Lord Capital is suing Finacity for allegedly stealing its trade secrets.Lord filed its complaint on Sept. 18, pointing to an October 2015 arrangement in which it was to work alongside Finacity to arrange securitizations of trade receivables for clients. Lord claims that during the buildup for an initial deal, for printing company Flint Group, Finacity abandoned the partnership and instead lined up the funding on its own.The New York Supreme Court...https://www.abalert.com/search.pl?ARTICLE=175024Fri, 27 Oct 2017 00:00:00 +0200Fitch Report Dooms Global Jet Transactionhttps://www.abalert.com/search.pl?ARTICLE=174937
The cancellation of Global Jet Capital&rsquo;s debut securitization offers a rare look at the process of pulling a deal from the market.The $1.4 billion offering started making the rounds on Sept. 27 with Morgan Stanley running the books and Kroll assigning ratings of single-A down to triple-B to its various classes. But marketing efforts stalled when Fitch released an unsolicited report criticizing the transaction on Oct. 10, just days before it...https://www.abalert.com/search.pl?ARTICLE=174937Fri, 20 Oct 2017 00:00:00 +0200Landlord-Loan Program On the Drawing Boardhttps://www.abalert.com/search.pl?ARTICLE=174852
Window Rock Capital is planning to securitize landlord loans.The Gilbert, Ariz., investment firm began writing the credits in August and expects to start bundling them into bond deals by mid-2018. It already has discussed the initiative with rating agencies and underwriters, including a group of warehouse lenders that already are helping to fund the accounts.Window Rock partner Ketan Parekh is overseeing the effort.The firm writes each of its...https://www.abalert.com/search.pl?ARTICLE=174852Fri, 13 Oct 2017 00:00:00 +0200Trustees Build Cases Against Auto Lendershttps://www.abalert.com/search.pl?ARTICLE=174679
Issuers of subprime auto-loan securities could soon face a string of lawsuits from their deals&rsquo; trustees.The actions would focus on instances in which the values or performance of loans securitized in recent years have deteriorated because originators didn&rsquo;t adhere to stated standards. The first could come as soon as January.There&rsquo;s no word on which trustees are pursuing the actions. The most active banks in the sector in recent...https://www.abalert.com/search.pl?ARTICLE=174679Fri, 06 Oct 2017 00:00:00 +0200EverBank Revives MBS-Issuing Discussionshttps://www.abalert.com/search.pl?ARTICLE=174590
EverBank is back on the list of prospective mortgage-bond issuers.Word is circulating from bankers and rating analysts that the Jacksonville lender recently signaled plans to routinely offer bonds backed by jumbo home loans, including those that don&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; standards.EverBank completed two mortgage-bond transactions totaling $610.7 million in 2013, but then...https://www.abalert.com/search.pl?ARTICLE=174590Fri, 29 Sep 2017 00:00:00 +0200Koch Family Office Readies Buying Programhttps://www.abalert.com/search.pl?ARTICLE=174500
The Koch brothers are plowing some of their personal fortunes into asset-backed securities.The investments are expected to start by yearend via 1888 Management, a Koch Industries arm that launched in 2015 to invest on behalf of Charles and David Koch. Word is circulating that the portfolio could start at $100 million and grow from there.Sources said the investments would consist mainly of senior bonds backed by auto loans, credit-card receivables...https://www.abalert.com/search.pl?ARTICLE=174500Fri, 22 Sep 2017 00:00:00 +0200Redwood, Fitch Back On Speaking Termshttps://www.abalert.com/search.pl?ARTICLE=174395
Redwood Trust and Fitch are patching up their relationship.Redwood commissioned Fitch&rsquo;s ratings for every one of its jumbo-mortgage bond issues from 2011 to February 2015 &mdash; a run encompassing 25 deals totaling $9.9 billion. But the assignments stopped there, as the operations butted heads over a change in the cashflows for subsequent offerings.Indeed, for the 12 mortgage-bond transactions totaling $4.3 billion that Redwood has...https://www.abalert.com/search.pl?ARTICLE=174395Fri, 15 Sep 2017 00:00:00 +0200Guggenheim Beefs Up Underwriting Unithttps://www.abalert.com/search.pl?ARTICLE=174305
Guggenheim has added three senior executives to its asset-backed bond underwriting team.Anuj Bhartiya and Richard Onkey arrived this week as managing directors. Bhartiya is playing a key role on the New York firm&rsquo;s origination desk, with a focus on deals backed by non-mainstream assets including whole-business cashflows. He reports to U.S. asset-backed bond underwriting chief Cory Wishengrad. Onkey is working on the syndicate desk.Also...https://www.abalert.com/search.pl?ARTICLE=174305Fri, 08 Sep 2017 00:00:00 +0200Nationstar Developing Non-QM Programhttps://www.abalert.com/search.pl?ARTICLE=174039
Nationstar Mortgage plans to start writing and securitizing home loans that fall outside the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; guidelines.The Coppell, Texas, company intends to launch the lending program during the fourth quarter. It currently is setting underwriting standards and other specifications for the accounts, which would include alternative-A and interest-only products.The loans would be...https://www.abalert.com/search.pl?ARTICLE=174039Fri, 18 Aug 2017 00:00:00 +0200Wilmington Bulking Up Trustee Operationhttps://www.abalert.com/search.pl?ARTICLE=173813
Wilmington Trust is pursuing a further expansion of its structured-finance trust business.The company has openings for five securitization specialists within its capital-markets group in the U.S., with potential locations in New York, Minneapolis, Buffalo, Baltimore, Chicago or Wilmington, Del. It also is seeking two staffers in Europe, in London and Dublin.Four of the U.S. recruits would be relationship managers charged with working with...https://www.abalert.com/search.pl?ARTICLE=173813Fri, 11 Aug 2017 00:00:00 +0200Industry Pros Write Off Square Programhttps://www.abalert.com/search.pl?ARTICLE=173727
Count out Square as a near-term issuer of asset-backed bonds.The San Francisco company, best known for its credit-card processing devices, had been pegged as a potential source of small-business loan securities. But upon a closer look, industry participants have concluded that the underlying accounts would mature too quickly.Indeed, most of Square&rsquo;s small-business loans pay off in six or seven months. That compares to up five years for...https://www.abalert.com/search.pl?ARTICLE=173727Fri, 04 Aug 2017 00:00:00 +0200Exits Stamp Out Ashurst's CLO Practicehttps://www.abalert.com/search.pl?ARTICLE=173638
Ashurst, once among the most active law firms advising underwriters of collateralized loan obligations, is pulling back from the market amid a staff exodus.At least eight partners have quit Ashurst&rsquo;s New York-based CLO practice this year, including six who will soon join rival law firm Chapman & Cutler. The result, sources said, is that Ashurst likely will exit the CLO market altogether.William Gray, who led Ashurst&rsquo;s CLO practice, is...https://www.abalert.com/search.pl?ARTICLE=173638Fri, 28 Jul 2017 00:00:00 +0200Railcar Builder Readies Financing Programhttps://www.abalert.com/search.pl?ARTICLE=173544
One of the largest railcar manufacturers in the U.S. is positioning itself as a routine issuer of asset-backed bonds.American Railcar Industries&rsquo; offerings would be backed by leases written through an in-house financing unit that launched in June, and could start flowing as soon as October. As part of the push, the St. Charles, Mo., company has been talking to banks including Credit Suisse and Morgan Stanley about supplying warehouse lines...https://www.abalert.com/search.pl?ARTICLE=173544Fri, 21 Jul 2017 00:00:00 +0200Fidelity Crafting Vehicle to Purchase ABCPhttps://www.abalert.com/search.pl?ARTICLE=173456
Fidelity Investments is planning a fund that would buy asset-backed commercial paper, a potential bright spot for a market that has been hurt by a recent exodus of money-market managers.While the effort still is in the early stages, sources said Fidelity executives intend to launch a mutual fund that would buy securities issued by commercial-paper conduits, as well as the short-dated &ldquo;A-1&rdquo; classes of term securitizations. The...https://www.abalert.com/search.pl?ARTICLE=173456Fri, 14 Jul 2017 00:00:00 +0200Barclays to Recommence Trading in Europehttps://www.abalert.com/search.pl?ARTICLE=173371
Barclays is back in the business of trading asset- and mortgage-backed bonds in Europe.The push got under way this week with the hiring of former Credit Suisse staffer Pratik Gupta. He oversees trading of all mortgage bonds, along with floating-rate paper backed by consumer assets &mdash; including credit-card receivables, auto loans and personal loans.It&rsquo;s unclear how many more additions are planned, although Barclays representatives were...https://www.abalert.com/search.pl?ARTICLE=173371Fri, 07 Jul 2017 00:00:00 +0200Wells Places Spotlight on Trusteeshttps://www.abalert.com/search.pl?ARTICLE=173372
Mortgage-bond buyers are reexamining their exposures to trustees in the wake of Wells Fargo&rsquo;s move last week to withhold $94 million from investors in 20 deals.Wells&rsquo; action applied to 20 securitizations issued by Bank of America in 2004 and 2005, with a combined face value of $540 million. Wells&rsquo; justification: It needs the money to defend itself against a lawsuit from bondholders including BlackRock and Pimco that lost money...https://www.abalert.com/search.pl?ARTICLE=173372Fri, 07 Jul 2017 00:00:00 +0200European Buysiders Sizing Up US CLOshttps://www.abalert.com/search.pl?ARTICLE=173265
European investors are showing an increasing interest in U.S. collateralized loan obligations.While the amount of capital deployed so far has been modest, issuers said they have been talking to banks and pension systems in the U.K., Germany, France, Switzerland and some Scandinavian nations. Most of the discussions have revolved around senior paper.The activity has been reflected, in part, in moves by some managers to structure their deals so...https://www.abalert.com/search.pl?ARTICLE=173265Fri, 30 Jun 2017 00:00:00 +0200Regulatory Relief Seen for European Insurershttps://www.abalert.com/search.pl?ARTICLE=173126
European Union regulators are considering market-friendly adjustments to their Solvency 2 initiative.Word of the changes follow a May 30 compromise between the European Commission and the European Parliament that will afford more favorable capital-reserve treatment to most holders of securitized products deemed &ldquo;simple, transparent and standardized.&rdquo; It seems that the commission wants to see similar changes to Solvency 2, which...https://www.abalert.com/search.pl?ARTICLE=173126Fri, 23 Jun 2017 00:00:00 +0200NPL Offerings to Dwindle as RPLs Take Offhttps://www.abalert.com/search.pl?ARTICLE=172809
A long-awaited transition appears to be taking place in the market for bonds backed by dented mortgages.Offerings backed by nonperforming loans are forecast to dry up in the next year or two as banks and housing agencies deplete their portfolios of such accounts. But the opposite is taking place for reperforming-loan deals.Indeed, sources are describing 2017 as an inflection point at which nonperforming-mortgage securitizations will become less...https://www.abalert.com/search.pl?ARTICLE=172809Fri, 16 Jun 2017 00:00:00 +0200Reassured Alphabet Back In Buying Modehttps://www.abalert.com/search.pl?ARTICLE=172467
Google parent Alphabet has reversed a contraction in its asset-backed bond portfolio.Following a lengthy reduction in those holdings, indications heading into this year were that the Mountain View, Calif., company would remain on a similar path. But it instead boosted its asset-backed securities exposures from $1.9 billion at yearend to $2.5 billion on March 31.The additions appear to have accelerated since then, with bankers and issuers...https://www.abalert.com/search.pl?ARTICLE=172467Fri, 09 Jun 2017 00:00:00 +0200Deutsche Targets Non-Qualified Mortgageshttps://www.abalert.com/search.pl?ARTICLE=172376
Deutsche Bank is positioning itself as an underwriter of bonds backed by home loans that don&rsquo;t conform with the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; standards.Talk was circulating this week that Deutsche, which has had virtually no presence in the U.S. mortgage-bond market since the financial crisis, has been reaching out to originators of non-qualified accounts about funding their operations....https://www.abalert.com/search.pl?ARTICLE=172376Fri, 02 Jun 2017 00:00:00 +0200Jefferies Payout Revealed in Court Filinghttps://www.abalert.com/search.pl?ARTICLE=172281
Former Jefferies executive William Jennings received a $10 million severance payment from the bank when it forced him out, court documents show.The size of the payout was disclosed in a May 10 filing in U.S. District Court in New Haven, Conn., by attorneys representing former Jefferies trader Jesse Litvak as part of sentencing procedures tied to his federal securities-fraud conviction.While the information had appeared in documents tied to...https://www.abalert.com/search.pl?ARTICLE=172281Fri, 26 May 2017 00:00:00 +0200CLO Pros to Huddle Over Loan Shortagehttps://www.abalert.com/search.pl?ARTICLE=172189
A lack of fresh assets and continuing regulatory pressures will take center stage at this year&rsquo;s biggest collateralized loan obligation conference.Information Management Network&rsquo;s &ldquo;Investor&rsquo;s Conference on CLOs and Leveraged Loans&rdquo; takes place May 24-25 at Conrad New York hotel. Some 1,400 people are expected to attend, roughly matching the headcounts tallied in recent years.The conference agenda departs from earlier...https://www.abalert.com/search.pl?ARTICLE=172189Fri, 19 May 2017 00:00:00 +0200Fitch's Dean to Aid Kroll's Growth Efforthttps://www.abalert.com/search.pl?ARTICLE=172066
Kroll has hired former Fitch executive Michael Dean as head of issuer relations for its asset-backed bond rating unit.Dean, who stepped down from his role as co-head of Fitch&rsquo;s asset-backed bond rating group a year ago, arrives in his new role as a New York-based managing director on May 22. His task: to serve as the face of the Kroll team in recruiting clients and maintaining relationships with them.Dean&rsquo;s areas of focus would...https://www.abalert.com/search.pl?ARTICLE=172066Fri, 12 May 2017 00:00:00 +0200China Institutions Hesitating on US CLOshttps://www.abalert.com/search.pl?ARTICLE=171953
Collateralized loan obligation professionals in the U.S. are backing away from predictions for an influx of China-based investors.The disappointing outlook emerged as industry participants returned from the China Securitization Forum&rsquo;s annual main-event conference, held April 24-26 at the China National Convention Center in Beijing. They reported that major banks, insurers and asset managers in the country expressed interest in CLOs from...https://www.abalert.com/search.pl?ARTICLE=171953Fri, 05 May 2017 00:00:00 +0200Semper Alumni Prepare for Fund Launchhttps://www.abalert.com/search.pl?ARTICLE=171871
Two veteran structured-product traders who previously worked together at Semper Capital are starting a hedge fund.Jay Menozzi, who was Semper&rsquo;s chief investment officer, and portfolio manager Boris Peresechensky have formed Orange Investment of Orlando. They are talking to investors about a vehicle tentatively named Orange Structured Credit Fund, and plan to begin trading in the third quarter.Menozzi and Peresechensky are telling...https://www.abalert.com/search.pl?ARTICLE=171871Fri, 28 Apr 2017 00:00:00 +0200Colorado Opens Door to Utility-Fee Dealshttps://www.abalert.com/search.pl?ARTICLE=171774
Colorado lawmakers are considering legislation that would allow power companies in the state to issue asset-backed securities with a provision for unusually long-dated offerings.The Colorado Energy Impact Assistance Act, introduced in the House on April 13, would enable energy producers to pay for the retirement of out-of-date generation facilities by adding special fees to customers&rsquo; bills and then securitizing those cashflows for up to 30...https://www.abalert.com/search.pl?ARTICLE=171774Fri, 21 Apr 2017 00:00:00 +0200Mortgage-Bond Lawyers End Storied Careershttps://www.abalert.com/search.pl?ARTICLE=171685
Two veteran mortgage-finance attorneys who played key roles in the creation of the Structured Finance Industry Group are retiring from the business.Jordan Schwartz left his job as a senior counsel at Cadwalader Wickersham on March 31. Meanwhile, Larry Rubenstein plans to step down as a managing counsel in the capital-markets unit of Wells Fargo on May 1.In addition to the work they performed for their employers, Schwartz and Rubenstein were among...https://www.abalert.com/search.pl?ARTICLE=171685Fri, 07 Apr 2017 00:00:00 +0200Morgan Stanley Chases Risk-Transfer Gigshttps://www.abalert.com/search.pl?ARTICLE=171594
Morgan Stanley has hired a bond-structuring specialist to help it gain a presence as an underwriter of risk-transfer deals from Fannie Mae and Freddie Mac.Trevor Moffitt had been playing a lead role in arranging such transactions at Barclays, which racked up $5.9 billion of bookrunning assignments in the asset class since his arrival in 2013. Most recently, he supervised the structuring of a $639.9 million deal that Freddie priced via its Freddie...https://www.abalert.com/search.pl?ARTICLE=171594Fri, 31 Mar 2017 00:00:00 +0200Founders Part Ways With Sierra, Skoposhttps://www.abalert.com/search.pl?ARTICLE=171509
Sierra Auto Finance founder Sam Ellis and Skopos Financial co-founder Mark Gallas have separately left the subprime auto lenders.Ellis held the titles of president and chief executive at Sierra. Sources said the Dallas company broke the news of his departure to employees on March 20, citing no reason other than a desire on his part to spend more time with his family.Gallas, a managing director at Skopos, exited the Irving, Texas, operation this...https://www.abalert.com/search.pl?ARTICLE=171509Fri, 24 Mar 2017 00:00:00 +0200Securitization Pros Tackle Diamond Dealhttps://www.abalert.com/search.pl?ARTICLE=171419
Investment-banking firm Castle Placement is shopping a securitization of trade receivables tied to an unusual asset: diamonds.Castle Placement began showing the deal to investors at the Structured Finance Industry Group&rsquo;s &ldquo;SFIG Vegas 2017&rdquo; conference, held Feb. 26-March 1 in Las Vegas. The privately placed transaction is expected to total about $220 million and carry a single-A rating from Kroll. It likely will price in May,...https://www.abalert.com/search.pl?ARTICLE=171419Fri, 17 Mar 2017 00:00:00 +0200Head of Agency Initiative Shown the Doorhttps://www.abalert.com/search.pl?ARTICLE=171330
The founder of the Common Securitization Platform has been dismissed.A source close to the matter described a situation in which Adam Newman was forced out of his role as chief operating officer of Common Securitization Solutions, a joint venture between Fannie Mae and Freddie Mac that oversees the program from Bethesda, Md. Taking over most of his responsibilities is Al Barbieri, a senior vice president in Fannie’s capital-markets technology...https://www.abalert.com/search.pl?ARTICLE=171330Fri, 10 Mar 2017 00:00:00 +0200LendIt Confab to Showcase Improvementhttps://www.abalert.com/search.pl?ARTICLE=171244
With the marketplace-lending business on the mend, industry participants are eyeing the sector&rsquo;s main-event conference as an opportunity to display continued improvements.&ldquo;LendIt USA 2017&rdquo; takes place March 6-7 at the Jacob Javits Center in New York. Host LendIt already has been touting a record headcount of some 5,000 for months, up from the 3,600 people who showed up for the gathering&rsquo;s 2016 edition.One sponsor confirmed...https://www.abalert.com/search.pl?ARTICLE=171244Fri, 03 Mar 2017 00:00:00 +0200Synthetic Structure Pitched for Capital Reliefhttps://www.abalert.com/search.pl?ARTICLE=171146
J.C. Flowers & Co. and Sandler O&rsquo;Neill & Partners are pitching a program under which community banks could gain capital relief for their holdings of residential and commercial mortgages, among other assets.Word of the push comes shortly after the Comptroller of the Currency shot down a &ldquo;portfolio risk transfer&rdquo; initiative in which J.P. Morgan sought to reduce its capital requirements by securitizing its mortgages while keeping...https://www.abalert.com/search.pl?ARTICLE=171146Fri, 24 Feb 2017 00:00:00 +0200New Outlook Prompts Growth at Morgan Lewishttps://www.abalert.com/search.pl?ARTICLE=171030
Morgan Lewis has set out to recapture the top ranking among law firms that represent issuers of asset- and mortgage-backed bonds, starting with the hiring of two attorneys from rival Chapman & Cutler.Cory Barry and Mark Riccardi arrive today as partners in Morgan Lewis&rsquo; Washington practice, bringing with them a diverse list of contacts among issuers. Both have worked on transactions backed by credit-card receivables, for example, along with...https://www.abalert.com/search.pl?ARTICLE=171030Fri, 17 Feb 2017 00:00:00 +0200FFELP Flurry in State Issuers' Forecastshttps://www.abalert.com/search.pl?ARTICLE=170943
State-sponsored education lenders are lining up to issue bonds underpinned by government-guaranteed student loans.State Board of Utah got the ball rolling on Feb. 2, selling $420 million of bonds backed by college loans written under the U.S. Department of Education&rsquo;s now-unwinding Federal Family Education Loan Program. Still in the queue are FFELP-loan deals from Kentucky Higher Education, Massachusetts Education Financing Authority,...https://www.abalert.com/search.pl?ARTICLE=170943Fri, 10 Feb 2017 00:00:00 +0200Freddie Maps Reperforming-Loan Auctionshttps://www.abalert.com/search.pl?ARTICLE=170850
Freddie Mac plans to expand a program under which it funnels reperforming home loans into securitization pools.A pilot version of the initiative was rolled out in July, with Freddie agreeing to sell $199 million of reperformers to New York-mortgage REIT Chimera Investment &mdash; which in turn would fund the purchase with the proceeds from a bond sale. Now comes word that the agency wants to complete a follow-up transaction by March 31.After...https://www.abalert.com/search.pl?ARTICLE=170850Fri, 03 Feb 2017 00:00:00 +0200S&P Seeks Public Face for CLO Comebackhttps://www.abalert.com/search.pl?ARTICLE=170760
S&P is seeking an experienced collateralized loan obligation professional to help it regain lost market share in the sector.Sources said S&P officials have interviewed at least a half-dozen candidates for a key business-development position under managing director Mary Beth Burnett, who oversees 14 sales specialists across a range of businesses. The eventual winner would assume the duties of David Kreidler, who left his job as head of business...https://www.abalert.com/search.pl?ARTICLE=170760Fri, 27 Jan 2017 00:00:00 +0200Loan Scarcity Dampening Outlook for CLOshttps://www.abalert.com/search.pl?ARTICLE=170682
Collateralized loan obligation professionals are fretting over declining yields in the corporate-debt market.The matter stems largely from a trend in which borrowers have been able to negotiate lower interest rates on existing loans. Those &ldquo;repricings&rdquo; began to build late last year but especially took off in recent weeks, with the Jan. 1-17 total of $49.9 billion already representing the highest total for any full month.The previous...https://www.abalert.com/search.pl?ARTICLE=170682Fri, 20 Jan 2017 00:00:00 +0200New-Issue Lag Drives Secondary Tradinghttps://www.abalert.com/search.pl?ARTICLE=170599
With the supply of new structured-finance deals off to a slow start this year, secondary-market trading is running strong.The activity reflects a situation in which investors have ample capital to put to work, both in the form of fresh January allocations and money they set aside to take advantage of late-year fire sales that failed to materialize. Meanwhile, only a smattering of new offerings have surfaced since Jan. 1.The upshot in some asset...https://www.abalert.com/search.pl?ARTICLE=170599Fri, 13 Jan 2017 00:00:00 +0200Deal Flood Tests Rating Agency's Capacityhttps://www.abalert.com/search.pl?ARTICLE=170506
A late-year flurry of collateralized loan obligations exposed a potential limitation to issuance volume: the workloads rating-agency analysts are able to handle.While Moody&rsquo;s insists it didn&rsquo;t turn down any work, the agency concedes that it warned issuers and dealers in November to get in line quickly if they wanted their deals graded by yearend. In the meantime, it tasked some surveillance analysts with reviewing new...https://www.abalert.com/search.pl?ARTICLE=170506Fri, 06 Jan 2017 00:00:00 +0200Chinese Buyers Scoop Up American CLOshttps://www.abalert.com/search.pl?ARTICLE=170391
At least two institutions in China recently bought U.S. collateralized loan obligation securities on the new-issue market for the first time.Sources identified one of the investors as a bank. They pegged the other as an investment firm, possibly Fosun International of Shanghai.The activity immediately stirred up talk that a long-developing bid from China-based CLO buyers finally is materializing. Indeed, issuers said they recently have met with a...https://www.abalert.com/search.pl?ARTICLE=170391Fri, 16 Dec 2016 00:00:00 +0200Small-Business Lender Unwinds Securitieshttps://www.abalert.com/search.pl?ARTICLE=170301
A management shakeup at CAN Capital reflects trouble the small-business lender is having with its only securitization to date.CAN said on Nov. 29 that chief executive Dan DeMeo and two members of his team had taken an indefinite leave of absence after an internal review revealed some assets weren&rsquo;t performing as expected. Sources said the problems came to light after over-collateralization levels fell below allowable limits for a $191...https://www.abalert.com/search.pl?ARTICLE=170301Fri, 09 Dec 2016 00:00:00 +0200Reg AB Sways Timing of Huntington Dealhttps://www.abalert.com/search.pl?ARTICLE=170224
Huntington National Bank&rsquo;s latest auto-loan securitization offers a glimpse into how a little-discussed component of the SEC&rsquo;s new Regulation AB rules could affect the timing of deals during holiday weeks.Underwriters Bank of America, Credit Suisse and J.P. Morgan released a preliminary prospectus for the $1.5 billion transaction on Nov. 21. Under Reg AB&rsquo;s Rule 424(h), that paperwork must be distributed at least three business...https://www.abalert.com/search.pl?ARTICLE=170224Fri, 02 Dec 2016 00:00:00 +0200SFIG Offers Marketplace-Loan Guidelineshttps://www.abalert.com/search.pl?ARTICLE=170145
The Structured Finance Industry Group is developing a set of recommended practices for issuers of bonds backed by marketplace-originated personal loans.The trade group plans to release the guidelines in three phases, with the first to be unveiled on Dec. 1 at Information Management Network&rsquo;s &ldquo;Investors&rsquo; Conference on Marketplace Lending&rdquo; in New York. The initial component will deal in disclosures of loan-by-loan data to...https://www.abalert.com/search.pl?ARTICLE=170145Fri, 18 Nov 2016 00:00:00 +0200Parekh Recruited for Mortgage-Conduit Efforthttps://www.abalert.com/search.pl?ARTICLE=170060
An investment management firm with a mortgage-investing unit has tapped veter-an banker Ketan Parekh to develop a securitization business. Parekh, who ran Ameriquest’s massive mortgage-bond program prior to the market crash, started this week at Window Rock Capital, a Gilbert, Ariz., company with ties to Cardon Group, a family office in Mesa, Ariz. His mandate: build a mortgage conduit focused on loans that don’t meet the Consumer Finan-cial...https://www.abalert.com/search.pl?ARTICLE=170060Fri, 11 Nov 2016 00:00:00 +0200Spreads Widening as CLOs Crowd Markethttps://www.abalert.com/search.pl?ARTICLE=169978
A recent decline in funding costs for collateralized loan obligations has reversed course.Spreads on newly issued CLO paper had been tightening through October. But an Oct. 31 deal from Oak Hill Advisors showed a sudden erosion in the market for mezzanine notes, with underwriter Morgan Stanley placing an 8.9-year class of triple-B-rated securities at 415 bp over three-month Libor (see Initial Pricings on Page 10).That&rsquo;s 10 bp wider than...https://www.abalert.com/search.pl?ARTICLE=169978Fri, 04 Nov 2016 00:00:00 +0200Risk-Transfer Notes Showing Crackshttps://www.abalert.com/search.pl?ARTICLE=169887
A long-running rally in the market for risk-transfer bonds issued by Fannie Mae and Freddie Mac appears to be over.In the past few weeks, the most heavily traded versions of the bonds &mdash; those with below-investment-grade ratings down to single-B-minus &mdash; have dipped in value. Case in point: So-called M3 notes that Fannie sold via its Connecticut Avenue Securities shelf, with single-B ratings and average lives of eight years, are trading...https://www.abalert.com/search.pl?ARTICLE=169887Fri, 28 Oct 2016 00:00:00 +0200Piper Jaffray Prop Team Resets Emphasishttps://www.abalert.com/search.pl?ARTICLE=169807
Two Piper Jaffray staffers have turned their focus away from mortgage-bond purchases and toward arranging securitizations for clients.Luke Jackson and lieutenant Grant Whitehorn had been buying mortgage-backed securities since arriving at Piper Jaffray in 2007, tapping a combination of proprietary capital and hedge funds run by the firm under its Piper Jaffray Investment label. But they largely have unwound those positions in recent...https://www.abalert.com/search.pl?ARTICLE=169807Fri, 21 Oct 2016 00:00:00 +0200European Issuers Crowding Into Markethttps://www.abalert.com/search.pl?ARTICLE=169679
Europe&rsquo;s near-term issuance pipeline is growing.Industry participants describe a situation in which a number of asset- and mortgage-backed bond issuers are preparing deals, continuing a recent flurry of activity that followed a slow period in July and August. Among them is a Spanish subprime-mortgage transaction from Santander unit Union de Creditos Inmobiliarios.What&rsquo;s prompting the dealflow? Sources pointed to below-zero yields on...https://www.abalert.com/search.pl?ARTICLE=169679Fri, 14 Oct 2016 00:00:00 +0200US Banks Exploring Synthetic CLO Revivalhttps://www.abalert.com/search.pl?ARTICLE=169589
Several banks are considering the possibility of conducting synthetic collateralized loan obligations in the U.S.Barclays appears to be at the front of the line, with staffers there discussing how they might assemble the transactions. But sources said those efforts have yet to receive approval from management.Other banks are exploring similar initiatives. The idea would be to shed exposures to the institutions&rsquo; corporate-loan holdings, thus...https://www.abalert.com/search.pl?ARTICLE=169589Fri, 07 Oct 2016 00:00:00 +0200US Ruling Imminent on Bank MBS Dealshttps://www.abalert.com/search.pl?ARTICLE=169499
Major U.S. banks are anxiously waiting to see if a federal regulator accepts J.P. Morgan&rsquo;s opinion that a mortgage-backed securities blueprint it has been using this year provides relief from expensive capital charges.The Comptroller of the Currency privately raised questions about the deal structure in recent weeks and was expected to discuss it soon with J.P. Morgan bankers.At issue is the framework that J.P. Morgan used for two...https://www.abalert.com/search.pl?ARTICLE=169499Fri, 30 Sep 2016 00:00:00 +0200Zika Concerns Deter Miami Conferencegoershttps://www.abalert.com/search.pl?ARTICLE=169412
The Zika virus curtailed attendance at Information Management Network&rsquo;s &ldquo;ABS East&rdquo; conference.The event, held Sept. 18-20 at the Fontainebleau hotel in Miami Beach, fell short of what was expected to be a record crowd of more than 4,000. IMN said 700 people who registered for the event failed to show up, dropping the headcount to about 3,300.Bankers who attended the conference said many investors they expected to meet with...https://www.abalert.com/search.pl?ARTICLE=169412Fri, 23 Sep 2016 00:00:00 +0200More European NPL Deals Enter Pipelinehttps://www.abalert.com/search.pl?ARTICLE=169228
The completion of a nonperforming-loan securitization in Italy has stirred talk that similar offerings could follow.Banca Popolare di Bari priced its &#8364;150.5 million ($169 million) transaction last month, with underwriter J.P. Morgan placing &#8364;126.5 million of senior notes with Baa1/BBB ratings from Moody&rsquo;s and DBRS at 50 bp over six-month Libor and &#8364;14 million of mezzanine paper with B2/B grades at a spread of 600 bp. There...https://www.abalert.com/search.pl?ARTICLE=169228Fri, 16 Sep 2016 00:00:00 +0200Kroll Launching European Bond-Rating Efforthttps://www.abalert.com/search.pl?ARTICLE=169098
Kroll is starting a European bond-rating unit.The undertaking calls for the creation of a London team that initially would grade structured products that European issuers plan to distribute in the U.S., including those backed by project-finance cashflows and aircraft loans and leases. Over the long term, the group would seek to evaluate a full range of securitizations offered both in the region and abroad.Overseeing the push is Mauricio Noe, who...https://www.abalert.com/search.pl?ARTICLE=169098Fri, 09 Sep 2016 00:00:00 +0200Redwood Hitting Pause on MBS Programhttps://www.abalert.com/search.pl?ARTICLE=169001
Redwood Trust is poised to hit the brakes on its jumbo-mortgage securitization program.Sources said the Mill Valley, Calif., REIT has signaled its intention to issue one more deal in the third quarter &mdash; following a $348.5 million offering it priced July 21 &mdash; after which it would pull back from the market indefinitely. That would deprive investors of one of the most prolific sources of jumbo-mortgage paper since the financial...https://www.abalert.com/search.pl?ARTICLE=169001Fri, 19 Aug 2016 00:00:00 +0200BNP Installing Division Heads in US, UKhttps://www.abalert.com/search.pl?ARTICLE=168916
BNP Paribas&rsquo; hiring of former J.P. Morgan executive Mick Wiedrick was accompanied by two other high-level additions, signaling continued efforts by the bank to retool its securitization unit.The New York-based Wiedrick signed on lst week as head of asset-backed bond syndication in North America and South America. Meanwhile, Bilal Husain and Simon Jones agreed to move to BNP&rsquo;s London office from Deutsche Bank &mdash; Husain as...https://www.abalert.com/search.pl?ARTICLE=168916Fri, 12 Aug 2016 00:00:00 +0200Agencies Gravitate to Insurance Contractshttps://www.abalert.com/search.pl?ARTICLE=168837
Intense demand for so-called credit insurance risk sharing deals from Fannie Mae and Freddie Mac is suppressing growth in the agencies&rsquo; sales of risk-transfer bonds.Both product lines serve the purpose of removing loan exposures from the mortgage giants&rsquo; books. But companies including Aon, Arch Reinsurance and Guy Carpenter have shown such strong interest in the credit insurance transactions that Fannie and Freddie are prioritizing...https://www.abalert.com/search.pl?ARTICLE=168837Fri, 05 Aug 2016 00:00:00 +0200Guardian Finds Opening for CLOshttps://www.abalert.com/search.pl?ARTICLE=168762
Guardian Life just completed its first-ever collateralized loan obligation, underscoring how the environment has changed for rookie issuers in that market.The New York insurer priced its $406 million Park Avenue Institutional Advisers CLO on July 25 with J.P. Morgan running the books. In doing so, it joined just three other shops to debut in the sector so far this year.The common theme: Each has deep-enough pockets to retain the equity in its...https://www.abalert.com/search.pl?ARTICLE=168762Fri, 29 Jul 2016 00:00:00 +0200REITs Push Banks for Risk-Transfer Dealshttps://www.abalert.com/search.pl?ARTICLE=168669
Several mortgage REITs are trying to convince J.P. Morgan to come to market more often with mortgage bond deals designed to reduce its capital-reserve requirements under the Bank for International Settlements&rsquo; Basel 3 accord.Sources said executives from American Capital, Annaly Capital, Angelo Gordon & Co. unit AG Mortgage Investment, Invesco Mortgage Capital and Redwood Trust have signaled in separate meetings with the bank that they are...https://www.abalert.com/search.pl?ARTICLE=168669Fri, 22 Jul 2016 00:00:00 +0200Basel Tips Playing Field Against US Bankshttps://www.abalert.com/search.pl?ARTICLE=168584
A move by the Bank for International Settlements to reduce the amount of regulatory capital banks must hold against their structured-product investments failed to impress bankers and securitization professionals in the U.S.On July 11, the institution&rsquo;s Basel Committee on Banking Supervision lowered the &ldquo;risk weight floor&rdquo; for the least-risky types of asset- and mortgage-backed securities &mdash; those that meet European...https://www.abalert.com/search.pl?ARTICLE=168584Fri, 15 Jul 2016 00:00:00 +0200Startups See Profit in MBS-Market Exodushttps://www.abalert.com/search.pl?ARTICLE=168474
Operators of small hedge funds that trade mortgage bonds are working to raise capital, pitching opportunities that are emerging as larger investors curtail their activities.Anato Investment, Aperio Capital, Garrison Point Capital and Jeremy Point Management &mdash; all with less than $50 million of regulatory capital &mdash; deal in mortgage bonds that are largely unattractive to fund-management giants because the securities are in short supply....https://www.abalert.com/search.pl?ARTICLE=168474Fri, 08 Jul 2016 00:00:00 +0200Summer Slump Ahead for CLO Issuancehttps://www.abalert.com/search.pl?ARTICLE=168383
Collateralized loan obligation issuance is expected to dip in July and possibly August.Sources described the offering pipeline as mostly empty, with issuers, dealers and investors all stepping back. &ldquo;I don&rsquo;t know of anyone who is trying to push a deal out,&rdquo; one issuer said.A number of factors are at play, including a rise in financial-market volatility following the U.K.&rsquo;s June 23 vote to leave the European Union. At the...https://www.abalert.com/search.pl?ARTICLE=168383Fri, 01 Jul 2016 00:00:00 +0200